legal team is going to be hunkering down. thanks for joining us. >> we will hear more about that coming up. >> we're going to go to breaking news and give you more. fox news alert, breaking news, less than an hour ago the president's personal attorney, lead lawyer, john dowd, has resigned. he was the president's guy in charge prepping the president and robert mueller's russia investigation. chief white house correspondent john roberts joins us live with new information in the last few minutes. john? >> harris, good afternoon. john dowd was the lead attorney for the president's outside legal team, he has an attorney inside the white house dealing with the mueller investigation in terms of document production. after the president added joe degentlemen noef arc the writing was on the wall, going to be

difficult for john dowd to maintain the same sort of relationship that he has had with the president. for the last nine or ten months. so dowd decided it was time to resign. quite a strain, taking the role of the lead outside attorney. i don't know how much that might have played into it. dowd has decided that he is not going to be with the president's legal team any more. leaves him with two attorneys on the outside. joe de genova along with jay seculow, a familiar face on fox news. those two are now taking the helm. the outside counsel for the president, there are plans to bring more attorneys on to bolster that team as well. as the mueller investigation, harris, approaches a critical phase, that may include an interview of the president by

robert mueller. john dowd was very much in opposition to that idea. didn't see a real reason for it. particularly with the tense upon tens of thousands of pages of documents, e-mails, other materials that he and ty cobb had been producing to the mueller investigation. whereas people like toy cobb and sekulow were along the lines the president should be sitting down with the special counsel as long as there are narrow parameters of what the special council can ask about, to bring this investigation to a quick close. dowd had been putting together a legal argument that would sort of put mueller in a little bit of a box in terms of what he could ask. the argument that dowd was making was saying that you can only interview the president if you can prove that he has information that you can't get elsewhere. and we have produced so many documents, the white house in the transition to the mueller investigation, that would narrow the parameters of what you can ask the president.

john dowd, people who don't know him, old hand in washington, an attorney at the department of justice, member of the judge advocate general's office in the marine corps, he defended john mccain during the keating five scandal. and while he was the attorney for major league baseball, produced the lengthy report that led to the banning of pete rose. so an old hand here in washington. been around for a long, long time. now no longer with the president's outside legal team. >> it is interesting, we're all picking up on notes and going back through things today, trying to make sejs of it all. but -- make sense of it all. when the president wasn't necessarily taking john dowd's information, or suggestions as there have been those reports, the president increasingly ignoring that advice, some sources are telling reporters, you start to kind of get a more complete picture. it's hard to have somebody on your team if they want to legal

brief the other members of the team on what you should be doing or shouldn't be doing. >> i think probably what really led to his resignation was tensions within the legal team itself. again, dowd being on the side of, if you go to have the president sit down with mueller there has to be a good reason for it, he didn't think it was a particularly good idea. other people, including judge napolitano have spoken up to say you don't want to sit your client down for an interview with some one who owns a grand jury and he has two. you had sekulow and ty cobb saying the president should sit down for an interview, it could bring the investigation to a speedy close. there was a lot of friction and dowd looked at the writing on the wall with the president hiring joe degenova and said it's time to step aside. >> the president doing what he said he would do, get the cabinet he wants and i guess you put it under the category of other things. remember, he said that. john roberts, thank you.

>> he did. >> thanks for the news off the top here. let's analyze. from the fox business network, dagen mcdowell. co-sank kor of "after the bell" melissa francis. republican strategist and fox news contributor lisa booth. fox news political analyst and co-host of "the five" juan williams. great to have you all. let's get to the meat of the point here. the president making changes just as he said he would. >> well, i think that this is evidence of, we've talked about chaos in terms of the white house and people coming and going quite a clip. now, inside the legal team, which is so important to this president in terms of stabilizing his presidency, are and making it clear that he has a strategy to deal with robert mueller. joe degenova who is replacing john dowd, basically, is more experienced washington hand, having been a prosecutor there, and having the experience. but the difference is while dowd was competitive, i think that

what you see with joe degenova some one who believes there was a conspiracy against the president in terms of the intelligence agencies. that brings it to another level. i think movie terms, they were going to def conn 3. >> you can term it anyway you want but you know where we're going? we're going to a place where the president has been shouting from the forest for some time that, he sees it this way. >> absolutely, harris. you do need to be concerned if you are a member of the president's legal team with him sitting down with robert mueller. and doing what he did, maybe, on the call with vladimir putin and saying whatever is on his mind. because, again, you can easily get somebody on obstruction of justice. four out of the five guilty pleas have been lying to the fbi or lying to investigators from robert mueller. we can get march that stewart on the horn and find out about going to prison for that very thing.

you don't ultimately know what robert mueller has. if you tell be one fib, and i point outside of the special counsel, how the democrats are lining up to push robert mueller to file obstruction of justice charges. eric holder, the former attorney general, i mentioned on this couch some weeks ago, went on bill maher's show and said i think obstruction of justice charges will be filed, i've known robert mule 20er to 30 years. you have andrew mccabe in his statements last weekend, alluded to that. they're trying to put pressure on the special counsel to come up, to cook up these obstruction charges. and how do you that is if the president tells one fib to bob mueller. >> melissa, you have got one lead attorney, john dowd, outside lead, who is putting together a legal brief, if you will, argument for the president to sit down with mueller's team. enumerating the boundaries and parameters. now he's out. >> i agree with everything that you both just said.

and i would say that this is a president who loves to fire people. and you know, i mean -- >> reportedly dowd quit. >> right, but -- >> there's always healthy skepticism, were you close to the door when you quit. >> yeah, yeah. if you believe that i've got a bridge that i want to sell you. i agree with what they said, and the president's personal style is very aggressive, very up front, didn't match that of his first counsel. and now, much like with the secretary of state he has decided he wants people around him who exude his persona, an extension of how he's thinking and feeling. that's what this represents. whether or not it's dangerous, probably. and like you said, i do grow, i think this is ratcheting it up another level. this matches his style of how he wants to approach this. >> and how he approaches a lot of things. >> yeah. >> look at that tweet to kim jong-un, i'll go hard in either direction. >> right. president trump has no problem making things uncomfortable and forcing people out.

as john roberts pointed out there is a point of contention of bringing joe degenova into the legal team, perhaps part of the reason behind john dowd's exit. i'm glad that juan is at least conceding the fact that joe degenova has a long history in terms of being a former u.s. prosecutor, criminal attorney f you look at the headlines, most of the press, they really try to de demean him and act like he doesn't have the history he has, level of experience that he does. i appreciate the fact that juan is giving him that credit. i do think the sort of signals a shift in perhaps how his legal team is handling things. >> how so? >> joe, try to say it five times fast, joe degenova, has had a different approach in terms of viewing this entire investigation as sort of a witch hunt, which is the same concept, the same outlook that president trump has had as well. so perhaps the way that the legal team interacts with robert mueller changes, perhaps the

information statements coming out of the legal team change as a result of this leadership -- result of the change of the leadership team as well. >> good point, lisa -- >> i got there. >> no, no, are we looking at a situation, juan, where this legal team, now, is taking shape to better position the president against robert mueller? or something else. i mean, we have no way to read the tea leaves, but the way you describe dedenova and the way jay sekulow has been a very strong voice for the president, these are men that are now listening to the president. >> right. and i think that's the key point, harris f we boil all this down, let me say, we now have the president of the united states saying i'm spooking out, taking charge of this. remember, john dowd had been telling the president, mr. president, this is going to be over by thanksgiving. mr. president -- >> he was wrong, john dowd. he told him that. >> but, remember, he was, i think, i'm double thinking here, that he was pleasing his client,

that the client wanted to know that this was coming to an end, and everything was going to be okay. and dowd was trying to reassure him so that he wouldn't get panicky. apparently the president, emotionally, is at point where he feels i'm sick of this. it's not endingnd i want out, i feel i'm being unfairly targeted. >> you could hear the president, what am i paying you for, right? [laughing] you're paying this new legal team -- >> there you go. >> -- for their advice. the point i was trying to make in terms of obstruction of justice and lying to investigators, should make clear, those would be two separate things, lying under oath, perjury. this was the setout of the special counsel investigation was russia collusion to look into the trump campaign. but at the end of the day they will try and nail you on anything. and there's a lot of pressure from hardcore democrats from the outside to come up with something on the president. and you don't want to hand that to them by sitting down with

mueller and saying something, even that you might not know they have evidence on the other side. >> but avoid that, avoid that charge. >> perhaps president trump feels, as you mentioned, there has to be a coordinated effort to draw up the obstruction of justice. we saw it after the firing of comey, many in the media changed their tune from the russia collusion, russia collusion to obstruction of justice. perhaps president trump feels that publicly, from his legal team, they need to be stronger and push back on that being more aggressive with mueller and sort of playing the same game that many of the media have been playing. >> on that note, i brought this up, the "new york times" story about president trump's conversations about reince priebus and mcgann, the white house counsel, about what he said or asked them about -- what he asked reince priebus about his interview with bob mueller. it smells bad, smelled like they were trying to cook up something

that the president did wrong when it was -- there was no coercion there in the way the stories were told. but it looked bad in terms of the likes. >> and don't forget the public relations part of this. jay sekulow and joe degenova very effective on television. they are the kinds of people, unlike john dowd, who will make the case for the president in the court of public opinion. and i think -- >> great point, yeah. >> the president wants somebody that's a little more go get 'em, take it to mueller. >> that's the point i was making in saying that president trump perhaps feels there needs to be a public pushback to this narrative that's been driven by the left in the media that take the talking points from the left about obstruction of justice. >> it's not always him on the line. at the beginning of the year he told us what he wanted to talk about. we know when he goes to campaign rallies or what feels like them, he wants to talk about tax cuts. he wants to talk about military spending that is bumping up. he wants to talk about the accomplishments in his

administration. and so he needs somebody else to talk about these other things. my point about p.r. is that the president also, i'm sure knows, that the public would like to still see when you look at some of that even most recent polling, him sit down with robert mueller, the perception that once you do that, then you are close to the end. maybe that ball has moved. >> also, as simple as being on the offense versus being on the defense. that's his whole style. he feels like his team has been on the defensive. that's not what he wants. he wants to be out there, swinging. >> if you misspeak in front of a crowd, you know, nobody cares. if you misspeak when you're giving testimony to bob mueller, it's potentially a felony. >> yep. >> that's a big difference. >> we're going to move on. facebook founder mark zucker berg under fire after what critics call a weak response to a massive data breach. the ceo offering to testify on capitol hill. whether that could happen.

will that be enough? i have other questions. >> um-hum. [laughing] >> the writer didn't put in my questions. >> me too. >> house republicans from the intelligence commitry release something of their findings on the russia meddling investigation. democrats on the committee aren't too happy about it. the findings and the fallout, next. one part steak. one part ribs. two parts incredible. new steak & ribs at outback. $15.99 for a limited time. get a 6oz sirloin and make it your own with a choice of honey sriracha, barbecue, or dry rub ribs. so hurry in to outback now. and when youod sugar is a replace one meal... choices. ...or snack a day with glucerna... ...made with carbsteady... ...to help minimize blood sugar spikes... ...you can really feel it. now with 30% less carbs and sugars. glucerna.

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>> breaking news on capitol hill, lawmakers scrambling to pass a $1.3 omnibus spending package by tomorrow's deadline. house lawmakers received the contents of that massive bill last night. we are told they're getting ready to vote on the legislation. if the bill passes the house, then the senate gets a chance to vote as well. we're told the white house, house budget director, mick mulvaney could give an update at any moment f that we'll bring it to you live. stay close. fox news alert, republicans on the house invoting to release their version of the report on the findings of committee's commission into russian election meddling. which included looking into whether there was collusion between the trump team and russia. they are now waiting for the intelligence community to go over their report and redact any classified info before it's

released to the public. meantime, g.o.p. members releasing bullet points on their findings, in the politically fraught investigation. some of the major points, among many, when asked directly none of the witness pros vieded evidence of collusion, coordination, or conspiracy between trump campaign officials and the russian government. there was no evidence trump associates were involved in the theft or release of democratic e-mails. the trump team did have ill-advised contacts with wikileaks. the executive plan branchs, the obama white house, post identify election response was inadequate. and the sealed dossier was a big part of abstaining fisa warrants for carter paige, the ranking democrat on the committee says the minority was shut up on in the investigation and it was far from thorough. >> rather sad chapter in our commit i's long history. it was clear that their report was going to be completely political from beginning to end. >> anything new, juan williams? >> no, is that partisan exercise

and the committee had shut down, basically, the investigation. the difficulty here is devon knew necessary, the chairman of the -- nunes recused himself, seen as getting too close in terms of orders from the white house, coordinating with the white house. in that per sirnted later. adam schiff comes out, he's become more of a combative counter point to nunes. as a result, it looks like broken government rather than a real investigation. >> i agree, it's dizying, the different reports, the noise kind of drounls out anything that might be real in there. >> and i wonder, too, putting the blame on devon nunes, do you have concerns about leaks -- >> anybody. >> information coming from these closed door meetings. >> sure. but you got to -- i just, as i said, i think it's partisan exercise, lisa. to me one of the most incredible

likes recently was devon nunes on mark warner, trying to get in touch and publicly made this outreach to a russian, then nunes likes this. what is going on? the point that i take away from today, and the closing, is that the republicans on the committee last week were saying, oh, russia didn't try to favor president trump. the intelligence is strong. at that point you want to say i don't think you guys are serious. i mean, come on. >> there's also been somehow, some of these social media advertising, somehow swayed an election. that's been the concept being driven by the left. anyone who worked in politics, you look at $2,000 spent in the state of wisconsin. jeb bush in the republican primary spent $2,800 per vote. there's been a lot of dishonesty. >> we have breaking news. we knew this would be happening, at the white house, now what we know, is that inside the press briefing room is press secretary

sarah sanders introducing the office of management and budget director mick mulvaney on the spending bill. let's watch. >> the last three, four, five, six months we talked about trying to get the president's priorities funded. this omnibus bill dos that, funds the mimtry, gets the compensation, funds oip yoeds, school safety. tremendous increase in, on yors development, doesn't get a lot of attention. but the administration has been pushing. starts taking a look at funding infrastructure. and it also does a lot of what we wanted, not everything we wanted, but a lot what we wanted on immigration. all things considered when we look at the bill, we have to weigh what we asked for and what we had to give away to give it. is it perfect, no. is it exactly what we asked for in the budget, no. were we ever going to get that, no. that's not how the process works. when appropriation bill has to have 60 votes in the senate,

which they do, are you going to have to rely on democrat votes and republican majority like we have. we need nine democrats to support this bill. there was no chance everything we wanted passing. this is probably a good opportunity to bring up the line item veto. if the president had that this bill would look a lot different. but we don't have that opportunity. be a good time to look at the rules in the senate that drive us to these end results. all things considered in the balance, the president supports the bill, looks forward to signing it, before the funding, the last appropriation by midnight tomorrow night. >> thank you, mick. director mulvaney can give you more detail. his team put together a budget that submits to congress in february. congress is supposed to complete an appropriations process by september 30 at the end of the fiscal year. what we have endured since then is six continuing resolutions.

the secretary mattis has told us, it's debilitated what he needs to do. we have equipment that he is needing to repair, would rather purchase new equipment. we have one of the greatest priorities was to rebuild the military and this bill provides the largest year over year increase in defense spending since world war ii. it will be the largest increase for men and women in uniform in salary in the last 10 years. additionally, it provides as we've talked about, one of our signature priorities regarding $1.6 billion for the wall. it also provides a 10% increase for isis budget as well as 12 -- i.c.e. budget and increases overall. after the tragic school shootings, there are a couple of legislative matters that we asked the congress to adopt. one was the corner murphy bill, better known as fixnix, the stop school violence act, providing

additional $2 billion for school safety, purchasing equipment and personnel, both bills are included in the omnibus which we're pleased about. as mick outlined from the start, this process is one that certainly leaves a lot to be desired and it's one in which the appropriations pros necessary congress has been broken, now, for 22 years. >> all right, so you have members of the white house leadership stepping up before what we anticipate will be a vote on a very large spending bill to avoid yet a third government shutdown for the year already. you saw from the office of management and budget, mick mulvaney, starting with his comments and lastly mark short, the white house director for legislative affairs. talking, and we saw mitch mcconnell, senator mitch mcconnell earlier this morning, put out his bull hit points. the government funding bill contains significant victories for the nation hitting those points. why the hard sell, melissa? >> i think because there's so much spending in there. if you look --

>> $1.3 trillion. >> if you look at how the market is reacting today, to all of the stories that are out there. >> how is it reacting? >> it's down. >> can we pop it up? >> it's in the tank. >> can we see it? >> this is a reaction not only to what is going with the president's counsel but also to this huge bill that's just massive amounts of spending. and you know, the president got his spending by virtue of giving away a bunch of other spending. the market doesn't love that. >> there are no fiscal conservatives left, very few. that, again, necessity think that money grows on trees. and by the way, this dovetails with something that is going on also today, we're going to slap tariffs on tense of billions of dollars, imports from china. why does this matter? because china is the largest owner of u.s. debt. we are indebted to china, so if you really, you know what a trade deficit is not a debt owed somebody. this is. we have a $21 trillion debt in

this country. and there is no whiff of fiscal responsibility coming out of washington. and as interest rates go up, just the interest on our existing debt will swamp everything. it'll swamp what we can pay for our military. so get ready to basically pay our military with medicare checks. >> two things can be true at the exact same time. this bill has a whopping price tag, it doesn't fight for any of the priorities that republicans have been promising. >> the wall. >> before the voters for years. it was true. and another thing can be true as well. that if you did include defunding planned parenthood, border security, all of these things that republicans have been promising voters, don't get enough votes in the senate to pass this thing. the republicans don't have a super majority, they have on pick up democrat votes. those two things are both true. you coexist at the same time. >> but i got to tell you, the market is like the truth

barometer on all of these different things. are you right about the tariffs are scary, as they look like they're coming in. if they achieve the long-term goal, which is to stop the theft of intellectual property to china, that's something the market cares about. but that's off in the distance. in the short term, the tariff is a scary thing to look at on top of all of the spending. >> i want to give a really big "yeah but" if i can. the president, and the next little while, expected to sign a presidential memorandum targeting china's economic aggression through at least tariffs and investment restrictions. that's what we've been saying is necessary in order to deal with north korea. >> totally. >> i'm confused a little bit by what you're saying. >> short term pain for long term goals. you hope the long term goal is true. but as i talked to investors every day, and dagen can say the same thing, they're scared we end up with the higher cost and the tariff without the results.

>> we promised to get to juan. >> if you don't want to hand china more power and take that power away it from, you don't run up annual deficits. you don't run up our debt. we are running $1 trillion annual deficit because of this spending. we're handing power to china rather than taking away. >> i'm going to do it to you again, juan williams, that's the speaker of the house on the left of the screen, paul ryan. we've been talking about the spending bill. our crew will let me know if we're going to go in. but our house speaker is up there after leadership from the white house. juan? >> sitting here with dagen and melissa, people who have great business knowledge, interesting to hear their reaction. my reaction is to the politics of this. i think that's why mark short, the legislative director for the white house was there as well as mick mulvaney. on the political side, you are right, the republicans had to make a trade-off with the democrats to get the spending they wanted.

but the trade-off has blown up the size of that budget. the mitt cal side of it is about immigration, the wall, i don't know where it is, political side. and the democrats, no dreamers. no dreamer deal. the politics of this is very sound. >> we'll see. president trump set to slap steep tariffs on china. why he's doing this. and what the blowback could be. plus a war of words between president trump and joe biden after the former v.p. physically threatens the commander in chief for a second time. whether this could be a preview what we might see on the presidential campaign trail in 2020.

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>> the press ask me if i was debating him. i wish we were in high school so i could take him behind the gym. that's what i wish. >> the gloves are off between former vice president joe biden and president trump. wyden yet again raising the specter of physical violence against the commander in chief during an event at university of miami this week. >> when a guy who ended up becoming our national leader said i can grab a woman anywhere and she likes it, and then said i made a -- i didn't make a mistake but they asked me would i like to debate this gentleman. i said no. i said if we were in high school i'd take him behind the gym and beat the hell out of him. i've been in locker rooms, pretty good athlete. any guy who talked that way was usually the fattest, ugliest s.o.b. in the room. [laughing] . >> president trump, firing back of course. on twitter. posting this.

quote, crazy joe biden is trying to act like a tough guy. actually he is weak. both mentally and physically. and yet he threatens me for the second time with physical assault. he doesn't know me, but he would go down fast and hard crying all the way. don't threaten people joe. >> wow. >> juan, i kind of enjoy this. who cares if it's not presidential or vice-presidential. >> my gosh. you get off to 270-plus guys threatening -- >> let joe biden run in 2020. if he gets the nomination, we have an mma match in the octagon, pay-per-view instead of one of the presidential debates, all the money to cancer charity. >> and two 70-year-old guys. >> oh, oh, oh. no, no. >> i must say if you talk about celebrity politics to the point of absurdity, if that's the

case, mma match, dagen, it's blowing my mind. >> what would happen on the democratic side of the line when they go low we go high? what's this -- >> what's the strategy. >> he says he's, usually the fattest, ugliest s.o.b. i mean, like, we're talking about people's looks or we're not talking about their looks. >> he can't decide. >> it's the hypocrisy, one side condemning for violence then the other side at the same time joining in the talk of violence. >> none of this is appropriate. >> this is joe biden's personality. be clear about that. if joe had run against president trump in 2016, which the democrats, they had to have that lady in there, running against -- running, and with the nomination. you would have had two tough talking guys, joe biden from scranton, pennsylvania in with the unions, strong on foreign policy, would have been -- it would have been a more equal

match, i think. >> i think this kind of stuff is all stupid to be honest f you have a problem with the president speaking this way you should have a problem with the former vice president speaking this way. also, i find it a little ironic he was making these comments at an event about sexual assault and gender based violence. >> did you see the look on the women's faces? >> a lot of them cheered. at least the same women who wear pink hats, condemning this rhetoric from the president calling him a monster. >> some of them. >> there is flex outrage. you could write a case study about selective outrage during the trump era. if you have a problem with one -- >> i think he said if we were in high school the boys behind. and to me, if you're talking about -- >> acting like it? >> i think he's trying to be, you know, common people, order guy, order joe from scranton. >> violent out of control? >> no, he's saying he wants to confront the man and fight him,

and this is my point -- >> what he said -- >> juan, you ee better than that. >> wait, wait. what gou think? -- what do you think? >> you're playing games here. the reality, vice president biden and president trump essentially said the same thing and they're sort of threats to one another. if you don't like it, fine, that's completely fair, a lot of people don't. but if you support what joe biden said then you have to support what president trump said. they said the same thing to another. >> you mean what trump said about women? >> no -- >> that he would -- oh, the back and forth, beat him up? >> who we are -- >> the point is well taken. if you denounce or celebrate one or the other you have to denounce or celebrate both. >> right. >> and what we're talking about is the fact that this is about women. >> oh, yes. >> about violence against women. rather than meet that head on, with all of these women, you threaten to beat somebody up? it's just a question, why, what kind of political strategy is

that. >> show that he's a fighter. >> you don't think any other way to show that the man is a fighter ton put his fist in there? >> not actually. this is rhetoric, political rhetoric that i'm willing to stand up to donald trump. and i think donald trump -- >> i'm willing to stoop to his level? >> this is sign that joy biden is running, too bad he has trouble raising money. he's running in 2020. >> he threw a punch and nobody got hit. [laughing] >> i looked at these gentleman's statistics. president trump is thee inches taller than joe biden, four years younger. i think he could take him. >> oh my gosh, you're into this, wow. >> wow, i think he could take him. >> are we "outnumbered" for a commercial? just asking. thinking of president trump at the white house, where he is expected to announce billions of dollars worth of tariffs and other measures against china. when that happens, we will take you there.

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>> fox news alert, the president signing tariffs on china. let's watch. >> president trump: the factories in our country, closed, shuttered, gone. six million jobs at least gone. now they're starting to come back. you see what's happening with chrysler, with foxcon, with so many other companies wanting to come back into the united states. we have one particular problem, and i view them as a friend, i have tremendous respect for president xi. we have a great relationship. they're helping us a lot in north korea. and that's china. but we have a trade deficit depending on the way you calculate, of 504 billion. some people say it's really $375 billion.

many different ways of looking at it. any way you look at it, it is the largest deficit of any country in the history of our world. it's out of control. we have a tremendous intellectual property theft situation going on which likewise is hundreds of billions of dollars. that's on a yearly basis. i've spoken to the president, i've spoken to representatives of china, we've been dealing with it very seriously, as you know, we're renegotiating nafta, we'll see how that turns out. many countries are calling to negotiate better trade deals because they don't want to have to pay the steel and aluminum tariffs. we are negotiating with various countries. mr. leitheiser, mr. ross.

we're just starting negotiation with the european union. because they've really shut out our country to a large extent. nef barriers they can trade with us but we can't trade with them. strong barriers. very high tariffs. we don't. just not fair. nafta has been a very bad deal for the united states. but we'll make interest better. or have to do something else. the deal we have with south korea is a very one-sided deal. a deal that has to be changed. a lot of things happening. with china, we will be doing a section 301 trade action, it could be about $60 billion. but that's really just a fraction of what we're talking about. i have been speaking with the highest chinese representatives. including the president.

and i've asked them to reduce the trade deficit immediately by $100 billion. that's a lot. that would be from 25%, depending the way you figure, to something even more than that. we have to do that. the word that i want to use is reciprocal. when they charge 25% for a car to go in, and we charge 2% for their car to come into the united states, that's not good. that's how china rebuilt itself. tremendous money we have paid since the founding of the world trade organization, which is actually a disaster for us. it's been unfair to us. the arbitrations are very unfair. the judging has been very unfair. and knowingly we always have a minority.

and it's not fair. we're talking to world trade, we're talking to nafta, talking to china, we're talking to european union. i will say every single one of them wants to negotiate. and i believe that in many cases, maybe all cases, we will end up negotiating a deal. so we've spoken to china and we're in the midst of a large negotiation. we'll see where it takes us. in the meantime we're sending a section 301 action, i will be signing it right here, right now. i'd like to ask bob leitheiser to say a few things about the 301 and where we are in the negotiation. we are doing things for this country that should have been done for many, many years. we have had abuse by many other countries and groups of countries that were put together in order to take advantage of the united states.

we don't want that to happen, we're not going to let it happen. probably one of the reasons i was elected, maybe one of the main reasons. we have an $800 billion trade deficit with the world. think of that. let's say we have 500 to 375, let's say we have 500 with china, and we have $800 total. with the world. that would mean that china is more than half. we're going to get it taken care of. frankly, it's going to make us a much stronger, much richer nation. the word is reciprocal, that's the word i want everyone to remember. we want reciprocal, mirror. some people call eight mirror tariff. or a mirror tax. just use the word reciprocal.

if they charge us, we charge them the same thing. that's the way it's got to be. that's not the way it is. for many decades it's not been that way. i will say the people we're negotiating with smilingly they really agree with us. i really believe they cannot believe they have gotten away with this for so long. i'll talk to prime minister abi of japan and others, great guy, friend of mine. and there will be a little smile on their face, and the smile is, i can't believe we've been able to take advantage of the united states for so long. so those days are over. ambassador lighthiezer, thank you. >> thank you mr. president. first of all those who don't know section 301 is a statute that gives substantial power authority to the president to

correct actions in certain circumstances where there's unfair acts, policies, or practices by our trading partners. in this case the area is technology. technology is probably the most important part of our economy. it's 44 million people who work in high technology areas. no country has as much technology intensive industry as the united states. and technology is really the backbone of the future of the american economy. given these problems the president asked usgr to conduct a study, we conducted a thorough study, we conducted hearings, looked at documents, many, many business people we talked to, we had testimony as i say, and we concluded that in fact china does have a policy of force technology transfer of requiring license licensing at less than economic value at state capitalism wherein they go in and buy technology in the united states in non-economic ways.

and finally cyber theft. the result of that is that the president has analyzed it, we have 200 page study which we'll put out and he has concluded that we should put in place tariffs on appropriate products, we can explain later how we concluded what products they are, that we would put investment restrictions on china with respect to high technology, and that we will file a w.t.o. case. some of the action involves a w.t.o. violation. this is an extremely important action. very significant. very important. for the future of the country. really across industries. i would really like to thank you mr. president, for giving me the opportunity to work on it. >> president trump: thank you very much. >> intellectual property rights are our future. it's no idea that in june of this year, the u.s. patent and trademark office will issue its 10 millionth patent. 10 million patents.

there's no country in the history of the world that remotely approaches that. so the steel and aluminum actions we have taken deal more or less with the present. this action, intellectual property rights, deals with the future. so we're trying to solve both today's problem and problems that otherwise will be forthcoming. that's why these actions are so important, and so important in unity with each other. we will end up negotiating these things rather than fighting over them in my view. >> president trump: mike pence would you like -- >> thank you mr. president. and to all our honored guests. today's action sends a clear message that this president, our entire administration, are determined to put american jobs and americans first. the action the president takes under section 301 also makes it

clear that the era of economic surrender is over. the united states of america is taking targeted and focused action to protect not only american jobs but america's technology which will power an drive an innovation economy for decades to come. it is just one more step of a promise made and a promise kept by president trump. >> president trump: so we'll sign right now. i just want to let everybody know, just the second time, that we are in the midst of very major and very positive negotiations. positive for the united states, and actually very positive for other countries also. we have great business leaders and leaders period right behind me. i may ask marilyn lockheed, the leading would man's business executive in this -- woman's

business executive according to many in the country. we buy billions and bill wrons of dollars worth of that beautiful f-35. it's stealth, you can't see it, correct? >> correct. >> president trump: better be correct, right, marilyn, please say a few words. >> thank you mr. president. i would just say that this is a very important moment for our country in that we are addressing what is a critical area for the aerospace and defense industry and that is our protecting our intellectual property. as has been expressed, that is a threat to us, if we have that stolen from our companies because that is a life blood of our companies. so we welcome this action on the part of the trump administration and president of the united states. thank you. >> president trump: thank you, marilyn. this is the first of many.

number one, but this is the first of many. [no audio] >> president trump: thank you all very much. marilyn? >> thank you mr. president. >> president trump: thank you mr. president. >> would you like to testify to special council robert mule. >> president trump: thank you. -- robert mueller tpt p. >> president trump: thank you, thank you. >> the president and his team, the president as hoe was signing what they call a memo targeting china over steel, aluminum and intellectual property theft a lot of tariffs. you can see the market trading lower as that is signed into action. we are back here on the couch as well. dagen, i know you wanted to make

a point about. this he said it was the first of many. this is a gamble. he talked about that he's negotiating, positive talks with many countries right now. this may be the stick and the old carrot and the stick negotiating attempt. what do you think? >> it's important to lock arms with all of our allies that, china also steals interest electric toweltule property. christopher wray said china xwhits more economic espionage than any other country. china requires u.s. businesses to transfer technology to any chinese partners they do business with. we'll see if it works. the trick is not to punish americans for china's behavior. if china retaliates it will be on things like hogs and soy beans that, could hurt us. >> you know that's coming, the fight is coming. the question is should he have been talking before. he reiterated, he sees what the markets are doing, don't think this is the end. we are negotiating

if you want to fight china stop spending so much money, bring better budget deficits down and stop handing them power. >> all good points. and on that, thanks to juan williams, we will hand it over the harris. >> starting with breaking news achlt parentally they have enough votes now to pass the enormous $1.3 trillion spending bill that gets us through september. remember, we have already seen couple of government shutdowns over a lot of issues. this gets us beyond that point, would have happened if they didn't pass. this is just the house, then the senate, then the president. let goes to mike emanuel, chief correspondent for us on the hill. what's the latest? >> harris, good afternoon. the house has the necessary votes to pass the $1.3 trillion om omnibus package, we're getting for the gavel to drop, we'll get the numbers to you as soon as possible. a big part of the pitch for passing the bill is rebuilding the united states military.